AREIT, Inc. Acquires Seda Hotel in Lio, El Nido, Palawan

​For Php 1.19 billion in cash, AREIT, Inc., the publicly listed REIT of Ayala (PSE: AREIT), successfully acquired Seda Lio in El Nido, Palawan, from Ayala Land Inc.'s subsidiary Econorth Resort Ventures, Inc.

The 153-room Seda Lio resort hotel mainly serves families, social and business gatherings, and other travelers. Through the transaction, Econorth Resort Ventures, the hotel operator, will grant AREIT a guaranteed building lease for the next 25 years, starting in January 2024.

The deal is a part of AREIT's growth plans for 2024, which include infusions from its sponsor, Ayala Land, Inc. (PSE:ALI), of its flagship buildings in the Makati CBD, Ayala Triangle Gardens Tower 2, which is ALI's most prestigious head office, located at the intersection of Paseo de Roxas and Makati Avenue, as well as the luxury mall Greenbelt wings 3 and 5 and the Holiday Inn and Suites at Ayala Center, Makati, and the P21.8 billion Seda Hotel at Ayala Center Cebu. Complementing the Ayala Land, Inc. infusions is the acquisition of a 276-hectare industrial land in Zambales leased by Giga Ace 8, Inc. from Buendia Christiana Holdings Corp. (BCHC), wholly-owned subsidiaries of ACEN Corporation.

​Except for Seda Lio, the aforementioned assets will be acquired through a property-for-share swap with ALI and its subsidiaries, Greenhaven Property Ventures, Inc. and Cebu Insular Hotel Co., Inc., subscribing to 642,149,974, and BCHC to 199,109,438 AREIT primary common shares at an exchange price of P34.00 per share, as validated by a third-party fairness opinion. The infusion will be for the approval of AREIT shareholders at their Special Stockholders Meeting on 12 February 2024 and pertinent regulatory bodies thereafter.

“The acquisition of Seda Lio, alongside the planned asset infusions in 2024, will not only enlarge and expand AREIT’s footprint but also diversify its assets and reduce concentration risk,” said Carol T. Mills, President and CEO of AREIT. She added, “Altogether, this will grow AREIT’s Assets under Management from Php 87 to 117 billion, quadruple the company’s size when it first listed in August 2020.”

​AREIT, Inc. (AREIT) was incorporated on September 4, 2006, as a real estate company. It was originally known as One Dela Rosa Property Development, Inc. before changing to its current name on April 12, 2019.

It is the first Real Estate Investment Trust (REIT) in the Philippines, formed primarily to own and invest in an income-generating commercial portfolio of office, retail, and hotel properties in the country that meets its investment criteria.

As a commercial REIT, AREIT is focused on expanding its office, shopping center, and hotel properties and exploring other types of real estate properties available in the market as the opportunity arises. AREIT was publicly listed on the Philippine Stock Exchange on August 13, 2020.

As of December 31, 2022, 34% of the company is publicly held, while the remainder is owned by its sponsor, Ayala Land, Inc. (Ayala Land or ALI). AREIT offers an investment opportunity with a stable yield, distributing at least 90% of its distributable income from high-quality properties with strong tenant demand in its portfolio.

Solid sponsor support from Ayala Land and highly experienced fund and property management companies, AREIT Fund Managers, Inc. (AFMI) and AREIT Property Managers, Inc. (APMI), respectively, provide the potential for revenue and net operating income growth.